Hungarian EU Affairs Minister Tibor Navracsics said on Friday that his country is willing to make concessions to Brussels in order to avoid EU funding cuts for "violating the rule of law."

On Thursday, the European Parliament approved a report calling for the European Council to recognize the existence of a "clear risk" of Hungary violating EU values. 

European legislators expressed concerns about the functioning of Hungary's "constitutional and electoral systems, the independence of the judiciary, corruption, as well as Budapest's human rights record."

As part of the economic recovery plan, the parliament recommended reducing funding for Hungary.

"We are open to all options. We can negotiate," Navracsics said as quoted by The Financial Times.

The minister went on to say that there was agreement in Hungary on an anti-corruption authority, which could serve as proof of Budapest's willingness to keep its promises.

Elsewhere in his remarks, the minister has also expressed his optimism that Hungary and Brussels would be able to reach an agreement on financing by November, and that it would be "completely understandable" if the EU demanded monitoring to ensure that Budapest sticks to its commitments in the face of a lack of trust between the two parties.

According to The Financial Times, Hungary will receive approximately $22 billion as part of the EU budget for the period 2021-2027. It also intends to receive an additional 7 billion in grants, as well as billions more in loans from the recovery fund.

In July 2020, EU leaders agreed to establish the NextGenerationEU instrument, a $750 billion rescue fund designed to assist EU member states in mitigating the economic effects of COVID-19 restrictions. These are distinct from the recently approved EU budget of 1.082 trillion euros for the period 2021-2027.

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